Westlake Village, Calif. - Dealer satisfaction has increased in all finance provider areas for the second consecutive year, with product offering significantly contributing to increases in satisfaction, according to the J.D. Power 2013 U.S. Dealer Financing Satisfaction Study.

The study examines dealer satisfaction with lenders in four finance areas: prime retail credit; sub-prime retail credit; retail leasing; and floor planning. Satisfaction is measured across three factors in the prime and sub-prime retail credit areas: finance provider offering; application/approval process; and sales representative relationship. Four factors are measured in the retail leasing area: finance provider offering; application/approval process; sales representative relationship; and vehicle return process. Three factors are measured in the floor planning area: finance provider credit line offering; floor plan support; and floor plan portfolio management.

Overall dealer satisfaction with prime retail credit lenders is 890 on a 1,000-point scale, an increase of 5 points from 2012, and retail leasing satisfaction is 891, up 3 points from 2012. Floor planning satisfaction has increased the most among the four lending areas—an increase of 11 points from 2012 to 924 in 2013.

Increasing industry adoption rates of such process innovations as eContracting combined with improvements to dealer support and a solid product offering have contributed to satisfaction increases. The study finds that 30 percent of lenders offer dealers such options, with 39 percent of dealers that are offered these options sending business to them regularly.

"In addition to more improved services, competition and new entrants into the market provide dealers with more choices and product innovations," said Michael Buckingham, senior director of the auto finance practice at J.D Power. "This combination also creates a highly competitive marketplace for dealers to select their finance provider and increase vehicle sales."

Although satisfaction in the auto financing industry is improving, the study finds the following three best practices separate the lenders with average satisfaction scores from those with high scores:

• Sales representative excellence: To dealers, the sales representative is the most important touch point with a lender. Sales reps must have the knowledge and tools to teach and train dealers on the various finance product offerings.

• Organizational speed and efficiency: Building processes and an infrastructure that provide fast underwriting for all retail products, as well as fast funding of retail products and floor planning, is mission critical.

• Service excellence: Dealers support lenders that have personnel who are knowledgeable, friendly and customer focused.

"Indirect auto finance lending is a relationship business between dealer and lender," said Buckingham. "A customer-focused staff is a cornerstone for success."

Dealer Financing Satisfaction Rankings

Prime Retail Credit

Alphera Financial Services ranks highest among prime retail credit lenders, with a score of 970. Following in the rankings are BMW Financial Services (965) and Mercedes-Benz Financial Services (953).

Retail Leasing

BMW Financial Services ranks highest among lenders in the retail leasing area for a second consecutive year, with a score of 958. Following in the rankings are Mercedes-Benz Financial Services (954) and Ford Credit (929).

Floor Planning

Mercedes-Benz Financial Services ranks highest among floor planning lenders for a third consecutive year, with a score of 971. Following in the rankings are BMW Financial Services (966) and Ford Credit (948).

The 2013 U.S. Dealer Financing Satisfaction Study is based on responses from 3,962 dealers who were surveyed between March and April 2013.